Supermarkets in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: July 2024
SIC G47.110Revenue
£192.1bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
1m
Businesses
32,146
Wages
£XX.Xbn
Supermarkets in the UK industry analysis
Discounters, Aldi and Lidl, have penetrated the customer base of the traditional ‘Big Four’ supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), with their low prices and improving quality of products resonating with price-conscious shoppers. Sparked by the COVID-19 pandemic, online grocery delivery services have become essential to people’s lives. According to the ONS, food store volume sales grew by 4.3% in 2020, while the value of online food retailing soared by 79.3%, driving strong revenue growth in 2020-21. The cost-of-living crisis severely constrains households’ budgets, with shoppers spending less on non-essentials, shopping around more and turning to discount supermarkets. As per the ONS, food prices reached 45-year highs in 2023, forcing food store sales down by 2.7% compared to pre-COVID-19 levels. As of May 2024, food price rises have eased for 14 consecutive months, helping to spark an uptick in spending among some households. Several supermarkets, including Tesco and Asda, grew their bottom line significantly throughout the cost-of-living crisis, with loyalty schemes a key driver. Over the five years through 2024-25, revenue is forecast to fall at a compound annual rate of 1.1% to £192.1 billion despite growth of 0.6% in 2024-25.
Trends and Insights
- Convenience stores rise in popularity. Shoppers increasingly seek quick shopping options, prompting major supermarkets to expand their smaller-format convenience store chains and draw sales from large-scale stores.
- High food prices drive discount shopping. Consumers seek lower-cost options as food inflation reaches a 45-year peak, pushing them towards discount supermarkets.
- Affluence drives supermarket locations. High disposable incomes in London and the South East attract premium supermarkets.
- The ‘Big Four’ supermarkets are losing market share. Shoppers flock to discounters like Aldi and Lidl due to their quality products at lower prices, while premium supermarkets face challenges adjusting to cost-conscious consumers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated £192.1bn in 2024.
Trends and Insights
UK grocery price inflation eases, sales volumes pick up
- According to the ONS, food prices increased by just 1.7% over the year through May 2024, marking the fourteenth consecutive month of easing.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Discounters will continue to take market share from traditional ‘Big Four’
- Aldi surpassed the market share of Morrisons in 2022, while Lidl is rapidly catching up with the former ‘Big Four’ supermarket.
Biggest companies in the Supermarkets in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Tesco plc | 53,009.4 | |
J Sainsbury plc | 28,551.2 | |
Asda Stores Limited | 22,287.6 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Meat, fish and delicatessen items, Fruit and vegetables and Dairy and lactose-free equivalents. Meat, fish and delicatessen items is the largest segment of the Supermarkets in the UK.
Trends and Insights
Food price inflation starts to ease after 45-year highs
- Supermarkets stock a variety of fresh foods like fruit, vegetables, meat, fish and delicatessen products, as well as an extensive selection of frozen products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Department Stores in the UK
- Fruit & Vegetable Retailers in the UK
- Convenience Stores in the UK
Complementors
- Petrol Stations in the UK
International industries
- Supermarkets & Grocery Stores in the US
- Warehouse Clubs & Supercenters in the US
- Online Grocery Sales in the US
- Supermarkets & Grocery Stores in Canada
- Warehouse Clubs & Supercentres in Canada
Table of Contents
About this industry
Industry definition
Supermarkets sell a range of groceries and food, including fruit, vegetables, bread, canned goods, toiletries, dairy goods, alcohol, cleaning products and cigarettes.
What's included in this industry?
Meat, fish and delicatessen itemsFruit and vegetablesDairy productsBeverages Frozen foodGeneral merchandiseCompanies
Tesco plcJ Sainsbury plcAsda Stores LimitedPurchase this report to view all 8 major companies in this industry.
Related Terms
MULTICHANNEL RETAILINGSLOTTING FEERADIO-FREQUENCY IDENTIFICATION (RFID)LOSS LEADERTHE BIG FOURIndustry Code
SIC 47.11 - Supermarkets in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Convenience stores rise in popularity. Shoppers increasingly seek quick shopping options, prompting major supermarkets to expand their smaller-format convenience store chains...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
High food prices drive discount shopping. Consumers seek lower-cost options as food inflation reaches a 45-year peak, pushing them towards discount supermarkets.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Affluence drives supermarket locations. High disposable incomes in London and the South East attract premium supermarkets.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The ‘Big Four’ supermarkets are losing market share. Shoppers flock to discounters like Aldi and Lidl due to their quality products at lower prices, while premium supermarket...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Supermarkets adapt to the cost-of-living crisis. Major retailers like Tesco and Morrisons are slashing prices to support customers during economic challenges.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Tesco plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of J Sainsbury plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Asda Stores Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Tesco plc, and factors influencing its performance in the industry
- Description and key data for J Sainsbury plc, and factors influencing its performance in the industry
- Description and key data for Asda Stores Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Promoting competition safeguards consumers. The Competition Act 1998 ensures fair market practices and prevents monopolies that could harm consumer interests.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising costs threaten supermarket profit. Soaring operating expenses, including energy and food input prices, reduce profit margins and force businesses to adopt new strategi...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Supermarkets in the UK industry in United Kingdom in 2024?
The market size of the Supermarkets in the UK industry in United Kingdom is £192.1bn in 2024.
How many businesses are there in the Supermarkets in the UK industry in 2024?
There are 32,146 businesses in the Supermarkets in the UK industry in United Kingdom, which has grown at a CAGR of 1.2 % between 2019 and 2024.
Has the Supermarkets in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Supermarkets in the UK industry in United Kingdom has been declining at a CAGR of 1.1 % between 2019 and 2024.
What is the forecast growth of the Supermarkets in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Supermarkets in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Supermarkets in the UK market in United Kingdom?
The biggest companies operating in the Supermarkets market in United Kingdom are Tesco plc, J Sainsbury plc and Asda Stores Limited
What does the Supermarkets in the UK in United Kingdom include?
Meat, fish and delicatessen items and Fruit and vegetables are part of the Supermarkets in the UK industry.
Which companies have the highest market share in the Supermarkets in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Tesco plc.
How competitive is the Supermarkets in the UK industry in United Kingdom?
The level of competition is high and increasing in the Supermarkets in the UK industry in United Kingdom.
